Goldman Sachs expects private credit to continue attracting capital over the long term, despite recent episodes of investor withdrawals and growing concerns around liquidity in the sector, according to a report by Bloomberg citing comments by the firm’s global head of alternatives for wealth Kristin Olson.
Olson said the bank continues to recommend meaningful allocations to private markets for ultra-high-net-worth and family office clients, citing the potential for higher risk-adjusted returns in exchange for illiquidity. She suggested a typical moderate-risk portfolio could allocate around a quarter to alternative assets, including private credit.
Her comments come as a number of private credit funds face redemption requests, with some managers – such as Apollo Global Management and Ares Management – reportedly restricting withdrawals as investors reassess exposure to riskier corporate borrowers, including those potentially affected by artificial intelligence-driven disruption.
Despite short-term stress, Olson argued that current conditions represent a “learning phase” for investors rather than a structural setback. She said investor concerns have been amplified by misunderstandings around liquidity and redemption mechanics, leading some investors to test withdrawal limits.
Goldman continues to see structural growth in the asset class, driven by demand for yield and the illiquidity premium offered by private markets. The firm’s asset and wealth management division oversees roughly $3.6tn in assets, spanning public and private investing strategies including private credit.
Olson added that, over time, increased familiarity with the asset class is likely to support further expansion of private credit allocations across wealth portfolios.
